Re gov spending - strong economy ?

Charlestown IN

Description

Not sure why a purely economic post would be flagged—-maybe if this one isnt flagged I won’t go on a revenge hunt. Not according to history or most economists. Here is a recent article from the Federal Reserve Bank of St Louis. The author studied the issue and determined that the stimulus of government spending offsets and actually negatively effects the economy to a degree it reduces. This is because taxation of the business sector reduces growth and jobs there. From just a logical aspect look at China. They were a miserable poor country in the early 70s when the followed socialism to its pure form, then they adopted capitalistic incentives and are now what they are. https://www.stlouisfed.org/on-the-economy/2017/december/government-spending-stimulate-economy